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Regional aircraft continue to drag on Bombardier's results, but order bubble may emerge soon

Analysis

Bombardier and many others had expected the North American and European regional markets to rebound much more strongly, but economic volatility has stalled plans by the sector to re-equip their fleets just as their legacy and low-cost counterparts are doing. However, once the log jam breaks, regionals in North America and Europe are expected to place big orders to replenish their fleets. For Bombardier, this would be ideal since it has a very large installed base of 50-seat regional jets as well as 30- to 50-seat turboprops.

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